Wine and spirits group Allied Domecq today drew a line under its failed bid for drinks giant Seagram as it posted a 16% hike in first-half profits.

Wine and spirits group Allied Domecq today drew a line under its failed bid for drinks giant Seagram as it posted a 16% hike in first-half profits.

The group behind Beefeater gin, pulled out of the bidding war for Seagram's wine and spirits business in December, leaving Diageo and French drinks group Pernod Ricard to pick up the brands.

Today, Allied said it had not been in the interest of shareholders to try to match the #5.5bn offered by its rivals.

And it argued that other acquisitions made during the first half meant it had achieved many of the "commercial and strategic objectives" that might have been met if it had been successful.

Allied snapped up champagne houses G.H.Mumm and Perrier Jouet and also bought valuable US distribution rights to Russian vodka Stolichnaya.

Strong growth from Allied's key brands, Beefeater gin, Ballantine's scotch and Kahlua, helped pre-tax profits bubble up to #236m in the six months to February 28, before exceptional items - a rise of 16%.